Pets at Home Share Price Fell 6.64% on Mixed Q3 FY ’24 Results

The Pets at Home Group PLC (LON: PETS) share price fell a maximum of 6.64% as of 8:50 GMT after releasing its Q3 fiscal 2024 results for the 12 weeks ended 4 January 2024. The company’s Q3 consumer revenue saw a 6.0% increase compared to last year and a 15.4% rise biennially. 

This growth is attributed to an increase in average customer spending and a 2% year-over-year rise in active VIP members, now totalling 7.7 million. The company's overall revenue rose by 4.3% in Q3, reaching £362.4m, with a like-for-like (LFL) revenue increase of 4.4%.

The Veterinary Group experienced a robust Q3, with a 13.4% revenue increase and a 13.3% LFL rise. The effective recruitment of veterinary professionals supported this success and continued growth in average spending, fueled by a mix of price adjustments and a shift towards more complex procedures. 

Retail sector revenue grew by 3.5%, with a 3.7% LFL increase in Q3. While this shows resilience compared to last year’s strong performance, it fell short of expectations. Despite a slowing market, the sector saw growth and market share gains in food, indicating a solid foundational position.

Gross margin showed sequential improvement from H1, with effective sell-through of seasonal ranges leading to a clean inventory position at the end of Q3. Availability levels and pricing position remained robust, with further improvements noted throughout the quarter.

Despite resilient growth in Q3, Retail business growth did not meet expectations. Consequently, the FY24 Group underlying PBT forecast is approximately £132m, anticipating no sequential improvement in Retail business LFL during Q4. 

The Pets at Home CEO, Lyssa McGowan, commented: “Our colleagues came together over our peak trading period to deliver a record sales performance, growing against a very strong performance in the prior year. While a slower market over peak meant our sales growth didn't quite hit the levels we expected, the business remains well positioned to benefit from long-term growth in the sector as we continue to win share and grow volumes across food and deliver differentiated performance through our unique vets business.”

Pets at Home share price. 

The Pets at Home share price fell 6.64% to trade at 274.00p from Monday’s closing price of 293.50p.